Papers & Reports

Courts worldwide generally interpret tax treaties more liberally than domestic legislation, often using the OECD Model Tax Convention Commentary for guidance. This article identifies significant issues with how Australian superior courts apply the Commentary. The author argues that the courts' narrow, literal interpretation of tax treaty terms and minimal reliance on the OECD Commentary, particularly regarding the taxation of hybrid entities and double tax relief, undermine the treaties' purposes. He concludes that this approach is similar to treaty override and could jeopardize multilateral efforts to enhance tax certainty and combat base erosion and profit shifting by multinational enterprises.

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Robots are transforming various sectors by performing tasks previously thought impossible to automate, such as medical procedures, driving, and legal research. This rapid development raises concerns about widespread job loss and technological unemployment, prompting global calls for a tax on robots. This paper examines the rationale behind these calls and assesses the possibility of implementing a robot tax. It reviews the international implications of increased robot use and critiques robot tax proposals, highlighting negative policy implications and practical challenges. Concluding that a robot tax is not the optimal solution, the paper suggests alternative strategies for addressing the challenges posed by automation, emphasizing the significant responsibility of policymakers to manage the risks and opportunities of this technological shift.

Prior to the 19th century, states rarely assisted each other with tax matters due to the emphasis on fiscal sovereignty. The advent of modern income tax introduced double taxation issues, leading to the development of double tax agreements (DTAs). Initial experimental DTAs in the mid-to-late 19th century increased significantly in the early 20th century, with over 3,500 DTAs now in force. Recently, the OECD has promoted multilateral tax treaties, such as the Convention on Mutual Administrative Assistance in Tax Matters and the Multilateral Convention to Implement Tax Treaty Related Measures To Prevent Base Erosion and Profit Shifting, transforming international tax law. The OECD is drafting more treaties under its “two pillar” program for further reform, with many countries agreeing to join. Multilateralism is now viewed by the OECD and its member states as the preferred method for tax system reform, though the success of these efforts remains uncertain.

The ICAP documentation package includes two parts: the Selection Documentation Package, which is provided at the time of applying to ICAP, and the Main Documentation Package, which is provided before the risk assessment commences. The OECD published the templates for the former, containing forms for group information and relevant advance pricing agreements and tax rulings, a spreadsheet for listing covered transactions, and a submission checklist.

This paper is part of a series of papers by the UF Tax Incubator presented in connection with a symposium hosted by the American Enterprise Institute June 17-18, titled “Complexities, Discontinuities, and Unintended Consequences of U.S. International Tax Rules: Options for Change.”

The UF Tax Incubator working group unravels the intricacies of the United States’ source of income rules, examining some of the pitfalls and difficulties associated with the rules and suggesting potential reforms and alternatives that could simplify and update the system.

This is the sixth edition of Corporate Tax Statistics, an annual publication that brings together information on corporate taxation and base erosion and profit shifting (BEPS) practices that previously were unavailable to tax policy researchers and policymakers. This includes data on corporate tax rates, revenues, effective tax rates (ETR), tax incentives for research and development (R&D) and innovation, and withholding taxes amongst other data series. Corporate Tax Statistics also includes anonymised and aggregated Country-by-Country Reporting (CbCR) data providing an overview on the global tax and economic activities of thousands of large multinational enterprise groups perating worldwide.

This article argues that market jurisdictions' taxing rights under Pillar One are justified by widely accepted principles in international taxation. These principles—such as ability to pay, the benefits principle, and economic allegiance—provide a normative basis for tax jurisdiction and are essential for the legitimacy and equity of the international tax regime. Despite criticisms of their vagueness and overlaps, the benefits principle and economic allegiance play a crucial role in designating countries with a legitimate claim to tax international income. The article contends that a principled allocation of taxing rights is not only desirable but a moral necessity for international coordination.

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This article explores whether international tax law is part of public international law. While international lawyers typically view international tax law as a subset of international law, international tax lawyers often see themselves primarily as tax specialists rather than international law experts. This distinction arises because international tax law focuses on concepts like residence and source jurisdiction, rather than nationality and territoriality, indicating substantive differences. 

This paper questions the effectiveness of bilateral investment treaties (BITs) in protecting investors from the qualified domestic minimum top-up tax (QDMTT) under Pillar 2.